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HF1731 (Legislative Session 94 (2025-2026))

Local governmental units authorized to opt out of the Metropolitan Council regulatory jurisdiction.

Related bill: SF2534

AI Generated Summary

Purpose of the Bill

The bill allows local government units in Minnesota to choose whether they want to be under the regulatory jurisdiction of the Metropolitan Council. This provides more autonomy to local governments over their own development and public infrastructure.

Main Provisions

  • Opt-Out Option: Local governmental units can opt-out of the Metropolitan Council's regulatory jurisdiction by passing a resolution. Once done, they will manage their own development and public infrastructure from January 1st following the filing.

  • Tax Implications: Once a local unit opts out, the Metropolitan Council cannot levy taxes on properties within that area, with an exception for transit services. If the council still provides transit services under the metropolitan transit taxing district, they may continue to levy certain taxes.

  • Grant Programs and Agreements: Local units that opt out can still apply for grants and enter joint agreements with the Metropolitan Council.

  • Public Services: The Metropolitan Council may continue operating its owned properties and providing transportation services within areas that opt out.

  • Opt-In Provision: Any local unit that has opted out may choose to opt back into the Metropolitan Council’s regulatory jurisdiction after a minimum period of four years. This is done by passing another resolution stating the change is in their best interest. The opt-in becomes effective from January 1st following the filing.

Significant Changes

This bill introduces a significant shift in the governance structure concerning the Metropolitan Council’s oversight. It empowers local governments to take control over their regulation, impacting how development and infrastructure are managed at the local level.

Relevant Terms

Metropolitan Council, opt out, regulatory jurisdiction, local government, development, public infrastructure, transit services, tax levies, joint powers agreement, opt-in.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionIntroduction and first reading, referred toElections Finance and Government Operations

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on tax levy authority despite opt-out by local unit."
      ],
      "removed": [],
      "summary": "This section allows the Metropolitan Council to levy a tax on property within a local governmental unit that is part of the metropolitan transit taxing district.",
      "modified": [
        "Specifies tax levy conditions related to transit services."
      ]
    },
    "citation": "473.446 subd. 2"
  },
  {
    "analysis": {
      "added": [
        "Encourages cooperation through joint powers agreements."
      ],
      "removed": [],
      "summary": "This references the ability for local governmental units to enter into joint powers agreements.",
      "modified": []
    },
    "citation": "471.59"
  }
]

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